Business Start-up Costs in Spain

In order to start a company in Spain, an entrepreneur needs a proper evaluation of the costs required, so that he can start the procedure with a well-defined plan.

1.    What is the minimum share capital?
The minimum share capital required for a Limited Liability Company in Spain is around 3,000 EUR, while the incorporation of a Joint Stock Company in Spain requires a minimum share capital of 60,000 EUR.

2.    What are the Company Registration fees?
Company registration fees in Spain range between 1,500 and approx. 4,000 Euros. BridgeWest provides company formation services in Spain for a fee of below 1,500 Euros. This amount also includes Public Notary fee and Trade Register taxes.

3.    What are the costs to rent an office space?
The costs for renting an office space differ on the basis of the city and the location. Prices are situated at about 11 EUR per square meter monthly in Madrid and Barcelona, while in other cities, the costs can be as low as 4 EUR per square meter every month. Besides the rental costs, an office in Spain also requires the payment of various bills, from electricity to telephone.

4.    What are the costs for a virtual office if the client will not rent a location?
Although the costs for renting the space disappear, a virtual office in Spain still requires a mail address and a phone number, so that the company can be contacted by partners in the country. Companies registered in Spain can form a virtual office with costs ranging from 120 EUR to 160 EUR per month, depending on the services provided.

5.    What is the cost of hiring an employee?
The average salary in Spain is approximately 2,500 EUR per month, but hiring an employee requires other costs too. The employer must pay 23.6% of the gross salary to social security. Some other percentage might be added according to the work contract, so the employer might pay over 30% of the gross salary to tax authorities.

6.    What are the costs of hiring a local accountant?
A local accountant in Spain can cost between 100 and 300 EUR, depending on the services he provides for the company, the company’s activity in Spain, the number of invoices or other criteria.

7.    What is the yearly corporate tax?
A company registered in Spain must pay a corporate tax rate of 30% annually. The rate is reduced to 25% for small-sized companies or companies with an income of up to 120,000 EUR per year.

8.    What is the yearly dividend tax?
As far as the dividend tax is regarded for a Spanish company, the rate is 19% for dividends paid to nonresidents. The dividend tax rate paid by the company in Spain annually can be modified if a tax treaty is applied.

BridgeWest offers company formation in Spain, including virtual office and other related services.